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Hello all, I hope you're keeping safe. I have another (it's been a busy year!) problem with lawyers and service charges, I'll try to keep it brief.
I own a leasehold flat and we exercised Right to Manage a couple of years ago and appointed a managing agent to run things. I and other residents have a service charge dispute which has been ignored by the agent so I decided, against better judgement, to withhold part of the annual s/c payment. I wrote to the agent detailing the dispute and promptly received a letter from JB Leitch Solicitors threatening court action and demanding £240 legal fees including a small interest charge.
My lease allows the lessor to claim interest and legal fees and quotes Section 146 and 147 of the Law of Property Act 1925 and I understand that the managing agent requires written consent from the Landlord/Lessor to collect legal fees and interest, so in Feb 2020 I wrote to the solicitor asking if they had such permission. They wrote back today with:
"...please find attached copy of your lease, we refer to Schedule 2, Clause 3 (a) & (c) with regards to interest and costs claimed. Please note, these costs remain payable in accordance with the above clauses due to the breach lease, which was a result of non-payment."
I've attached a copy of the relevant pages of the lease. The cheeky sods have also upped the costs, stating:
"The total sum due at the time that the initial letter before action was sent was £271.40. However, as you are aware, the legal costs requested were only £240.00. In light of the above, payment in the sum of £269.05 is required in order to settle the matter."
I know that I've been an idiot and should have paid first then disputed the service charges, but I was annoyed about the lack of response from the agent.
Is it correct that they need prior authority from the Landlord to pursue for these fees, or am i bang to rights? Oh... I paid the s/c straight away.
tks for your help (again!)
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I own a leasehold flat and we exercised Right to Manage a couple of years ago and appointed a managing agent to run things. I and other residents have a service charge dispute which has been ignored by the agent so I decided, against better judgement, to withhold part of the annual s/c payment. I wrote to the agent detailing the dispute and promptly received a letter from JB Leitch Solicitors threatening court action and demanding £240 legal fees including a small interest charge.
My lease allows the lessor to claim interest and legal fees and quotes Section 146 and 147 of the Law of Property Act 1925 and I understand that the managing agent requires written consent from the Landlord/Lessor to collect legal fees and interest, so in Feb 2020 I wrote to the solicitor asking if they had such permission. They wrote back today with:
"...please find attached copy of your lease, we refer to Schedule 2, Clause 3 (a) & (c) with regards to interest and costs claimed. Please note, these costs remain payable in accordance with the above clauses due to the breach lease, which was a result of non-payment."
I've attached a copy of the relevant pages of the lease. The cheeky sods have also upped the costs, stating:
"The total sum due at the time that the initial letter before action was sent was £271.40. However, as you are aware, the legal costs requested were only £240.00. In light of the above, payment in the sum of £269.05 is required in order to settle the matter."
I know that I've been an idiot and should have paid first then disputed the service charges, but I was annoyed about the lack of response from the agent.
Is it correct that they need prior authority from the Landlord to pursue for these fees, or am i bang to rights? Oh... I paid the s/c straight away.
tks for your help (again!)
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